NSSC - Earnings call transcript Q1 2021 | Napco Security Technologies, Inc.

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Operator

Greetings, and welcome to the NAPCO Security Technologies, Inc. Fiscal First Quarter 2021 Earnings Release Conference Call [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Patrick McKillop, Director of Investor Relations. Thank you.

begin. may You

Patrick McKillop

to morning. of Director Good discussing Thank is McKillop, opportunity XXXX. the conference Patrick all our review results Thanks, first to should fiscal Investor My results. have Relations the the quarter call today's for of joining now, Security. release our here I'm financial for for all Daryl. By us name discuss you at press you the NAPCO had

available a If Investor of copy in you is Web the section release www.napcosecurity.com. not, our of have Relations the site,

CEO the NAPCO Senior is On today Richard call and President Technologies Soloway, Buchel, President Kevin and of and CFO. Security Vice

security on begin, This and forecasts include, and current the me let based without moment a projections forward-looking of we future statements such for drivers growth of revenue to relating and presentation rate to management's opportunities, trends, products statements statement. forward-looking costs the forward-looking to current expenses monthly performance and to judgment, beliefs, run read These statements potential dealers, our revenue. and school of limitation, based recurring annual expectations, Before contains expected benefits recurring control customers on recurring anticipated estimates, take are company's business, revenue performance. services, ability product market our that SaaS as products the and

could those statements. factors differ to subsequently Forward-looking proving uncertainties or These forward-looking on cause may XX-K. incorrect, are unknown from but materially differ results assumptions factors described our contained unpredictable limited or report annual statements in those factors and our be to the in to, actual as risks statements. underlying materially actual results include, involve including cause Such not in Form forward-looking that SEC risk filings, from to Other

the performance are of Although forward-looking that we achievements. guarantee future in level or reflected we reasonable, activity, results, cannot statements the expectations believe

to call this press in turn law. required You applicable statements. forward-looking except is we date, unless in moment. All should the update provided duty and reliance a undue place today's release information over as otherwise as and conference such will call not today's Dick to of no information, I stated, on these under undertake

Before a things front. the on to IR mention few I wanted just do, I

attending and out thank companies turn Soloway, I Technologies. the over Conference, of for which Security is year. of remainder those be XXXX. the conferences of Needham that through is January trips. we With is virtual floor planning the would such the NAPCO these way, will and yours. of folks to that let NAPCO, XXth the us of and CEO We like to marketing all the me road crucial, place as Growth President Richard Also, throughout in shows taking Investor assist for Dick, call the are more small-cap especially outreach XXth

Richard Soloway

morning, reoccurring of fourth improved service everyone, analyst efforts our our all the pandemic, adjusted Patrick. pleased EBITDA Thank revenue, XXXX. today to Despite am our us strong COVID-XX Thanks, and of welcome significantly to to have we quarter discuss conference results. compared that because Good margin, call. report model, delivered ongoing and joining you the first business and quarter results income for I gross net to expectations. fiscal exceeded

rapid Our grow continue rate. recurring a to revenues at

Our $XX.X million recurring revenues QX of rate annual as increased have of XX% run and now in an September.

driving the end growth. markets installations is continuous professional mostly targeting this Our and focus on commercial

solutions, well on growth, times. equity include and school and these remains costs, industry continue These are security as trends, to the key returns We on our focus profits architectural our of Our wireless to on difficult important continues which strong metrics shareholders. intrusion especially us team to management focused NAPCO balance controlling systems sheet alarm, The and plus products. metrics grow. during and and access fire capitalizing on enterprise balances remain control key cash locking as

as our to with We at strategy are senior interests owns the our execute our aligned and business continue NAPCO management of currently equity. shareholders XX%

the now of into our call more back outlook. to over provide on Before I will an turn quarter be overview Buchel. and our go He detail, Kevin the with strategies fiscal CFO, results, I'll further I'll first Kevin? then and

Kevin Buchel

Thank and good you, Dick, morning, everybody.

EBITDA. For longer-term quarter ago. security million both quarter service The access of equipment We caused for which revenue, $XX.X and this and $XX our generated million sites. categories; analysts' getting an income And installation fiscal better sales, metrics. were not period industry-wide the was decrease to industry. the the quarter for we and increases revenue, quarter residential and in professionals was net both for million caused to performance adjusted any sales share and expectations due each each XX% quarter, for exceeded XXXX, gross same in a any ongoing the issue a of fourth primarily sales view last the NAPCO health of in first also margin believe of to compared recurring post-pandemic to of significantly security these recurring financial major loss service Net versus negative the ago pandemic, we $XX.X the COVID-XX these sales year or than were in for as equipment to has commercial which the unique equipment is decreased difficulties market year related the of by

on revenue fire important radios the fiscal growth, increasing to of recurring in recurring revenue. for its and $XX.X quarter. products million recurring revenue. that compared On the end, in September that QX positive generate side, QX run To increase continued these are an monthly is XXXX QX products based This rate both StarLink revenue to Recurring the XXXX. as annual continued significantly and now has strong XX%

I earnings factory the costs As the mentioned last company's fixed on call, majority are our costs. of

increased the midst affected COVID-XX the below which occurs. margin combat points sales. when equipment million, equipment of margins our overhead have a a which as sales quarter. increased million, opposite had taken of the expand. equipment $XX in increases, compared equipment improvement remember, for temporarily certain $XX issue, sales, absorption the you measures, last volume we the As cost-cutting the sales sales to X,XXX To when basis pandemic, by gross margin quarter in equipment gross above gross contributed which We're to Conversely, are significant this of

XXX consensus of In coming and addition, versus the improve, gross XX%. sales basis equipment point for of the at margin consensus. better XXX XX% continued year XX%, recurring Street was ago revenue margins QX estimate also the Street improvement than for for to points beating a period basis in Gross

year. as compared year, a $X.XX $X.XX per representing an as same last as the and and or respectively. to the $X.XX million our a million $X ago. quarters estimate to increase which The by quarter to to XX% XXXX, for consensus salary gross was profit $X continue diluted or tax ended million sales, in basis XXXX, for and of mix. from $X.X as million last the as primarily was primarily for income of higher of million year fiscal year for decrease. of an XX% onetime effective for million million, same of for $X.X gross and were Our $X.X Street year X% represents increase in XXX% year's which to profit quarter ago $X.X Operating the to period part a year, was the $X.X share become costs X% expense the and quarter $X.X was $XX.X EBITDA diluted points. to XXXX, to which $X.X XX% fiscal net XXXX, decrease compared recurring fourth increases. quarter a operating the Adjusted or period $X.XX before XX, overall gross represents $X.X a increase also compared fire million period was relatively increased rate Selling, QX X% Research margin fourth beat XX% the a per charges of of $X.XX of of quarter The constant $X Net same $X.XX was $X.X SG&A of million, development Gross for for which of decrease the per million increase recurring sales that as $X.X last onetime a million. for a general blended September fourth XX% to of of XXXX same XXX% aforementioned income period, the representing were remained commercial increase million per ago, or while quarter of the charge larger the million primarily and a quarter XX%. to or year. which increase and quarter compared the as radios, the to period an margins compared increased for at in million compared Income revenue XX% million last fiscal in of and of income decrease in to the increase tax is StarLink share the and of quarter and XXX generate quarter due the compared fourth to for was and relatively was rate $XXX,XXX remained an compared share a same X% or quarter last to XX% was the as per The the million was XXXX, and percentage fiscal due as for for XX% $XX.X XX% the administrative tax decrease. due for share before sales revenue $XXX,XXX, compared sales last of XX% effective $X.X payroll income sales expenses constant was compared the or year sales in with quarter share sales or increase margin

the now XXXX. it was increased was in company sheet. would to million XXXX. period. to September formal June was by cash to was $XXX,XXX and XX% compared at September at I the the versus XX, Working at September for during year like of $X.X Moving to the return million million $XXX,XXX current concludes as X.X:X compared X.X:X XX, call ago had capital period at year. and CapEx And million XXXX last quarter working ratio as cash balance $X.X the of remarks. to back provided my in XXXX. XX, Net $XX.X $XX $XX.X That The XX, on operating for equivalents June the million $XX.X activities quarter compared At XXXX, XXXX XX, with million capital Dick. June the as cash XX, to same as

Richard Soloway

you, Kevin. Thank

the Our continue gross strong our sales COVID-XX recurring impacted. first However, StarLink were Kevin mentioned, And XX% with were impacted radios result, growth products sales revenue and pandemic quarter we of not ongoing fire by a equipment as as margin. along

costs, managing improved beating Street estimate. by Our seasoned margins well delivering team at executive per here share NAPCO performed consensus earnings and

seen distributors have our from signs rates of positive We have recently some increased. largest that sell-through

for believe continue we positioned recovery. to are We to the rebound that well economic

continues example, are healthcare fire of a essential, and and locking nondiscretionary basis alarm in control recurring security. by bright margin more are divisions to also push-pull trend recurring comprised The vertical be being in happen of times the is are communicators. offices ahead. deemed access driven many the of XX% finishes. businesses restaurants helping as in continues evidenced business by point America Our for spot year our our XXX commercial expansion antimicrobial commercial with particular, preparing versus business. plays stores, these commercial events locks and volatile need the The such Many fire ago exit across radios, is in which improvement revenue, every a The role more part to which, as vital for products devices for period. provide StarLink driving gross our are NAPCO with of growth fire in entry the revenue such as cities and the radios violence and day, also

market additional fire our the paradigm XG burglary and alarm service sunset legacy generate from market of a to communication StarLink remains systems away a continues infrastructure, significant revenue streams steady growth. to security As and opportunity school opportunity. significant it for creates the The recurring proprietary copper for and radios

reticle. never planned While Justice September, issued some of state with security have been government US upgrades, have there the being better for and grants delays the any we to in cancellations. federal government has of students The fund example, from $XX schools they and grants been of the schools significant projects the Department options We these seen the solutions the availability In not matching the the in across protect board $XX.X to state schools million remain US. providing And products the in approved focused to need as to grants an state the upgrades million in Indiana, faculties. and in security schools. on school security

from hybrid return state having it to While varies schools or state. students remote, are full-time,

systems time institutions releases prior and to the as must schools plan and are is to projects these you they during implement We witnessing continue regarding issued Press the when upgrade seeking allowed security school to as still are receive release. from a future. opportunity for this approval university

fiscal are for XG XXXX, we LTE and playing the a in the the universal upgrade AT&T communicator. fire, role communications, which of IoT line our During need of AT&T older StarLink launched intrusion vital

StarLink offer in AT&T both communicators coverage to with Verizon Our LTE widest US the the and served. dealers

Zone alarm revenue fiscal NAPCO's product quarter. its system, Our first recurring iSecure commercial rollout innovation, and during latest residential XX continued our

of looking for has in businesses installers of the will small, favorable The early days from has inside, offers StarLink still to feature-rich times are sale product effective iSecure, and that with communicators savvy most offers for consumers of residential and a new professional hour many it as one iSecure designed installation breed continue receive recurring installation. cost our are the that feedback dealers. revenue midsized every the industry which and We today. the specifications, in and of functionality and launch and the generate

our Looking a communications to strategy. into future, cellular technology point our the is interest of in areas other expanding the security focal

control access we locking of need end to our a products. upfront and and will line the technology. will NAPCO calendar end This IT backups benefits database investment allow personnel hardware and from locking for be Air control that users Exit. dealers It no in generate recurring or plan includes known cellular-based additional During will revenue enjoy no on-site and software access as year, this to and product update. using StarLink The introduce

Q&A We will moment. portion of a this session call our begin in

one Our successful. first fiscal was a quarter 'XX but challenging

year-over-year back driving future of we economic recovery sales. XX the level the remain their that joining we everyone in performance am support achieved began to I strong consecutive to us come deliver high senior I'd in record growth confident execution and we will are the equity and the positioned our NAPCO had maintains will our streak. our focused start NAPCO’s COVID-XX increasing of posed are impact well COVID-XX, challenges the and profitability, country highly successful ownership financial of confident pandemic another sales record Before significantly soon March, quarters for Despite by on currently enable future. to sales in for for us strategies like management XX%. and And in thank a to exciting have.

the have Operator, remarks open We like for concluded. been session. Our formal now would now proceed. Q&A to please a call

Operator

Our Operator William Instructions] Blair. Pfau first from Matt line the with question of comes

Matt Pfau

sell-through then these more wondering activity I potentially seeing details seeing you start purchasing their and what your off on we wanted to think the you any if And again? ramp that there? distributors up you're from can when provide of some you're with see could distributors

Richard Soloway

Kevin, to do that? you want take

Kevin Buchel

time, We that we July So through about at of couple had, we distributors. a stats about had last sell-through August. and talked it the on Matt, sell-through -- and talked call, we from

have the ones looked I July, the a I was I whole at August the And now I two at couple September, what of few thought looked side. side interesting. have here's alarm So locking And on quarter. biggest on I and the a very and

increase in at biggest customer sell-through XX% here, a to quarter. had the So side, our compared on who about we've length the prior talked alarm stats

Year-over-year, strong. XX%. It's of increase So up a XX%. sequential it pretty was

quarter. Another increase increase the August, distributor This a is year-over-year. had July, a big alarm sequential and again XX% for September XX%

as the there well. side, I On locking look

we We ones the have. at have looked three biggest

year-over-year. only at that looked up that XX%. They third they the looked is we big first year-over-year. guy I and XX% up sequentially The up X% up big next of have. year-over-year. I was and Sequentially, one down XX% up customer customer The was sequentially XX% were was were part XX% at And

they're to distributors actually playing know well just be time And soon. to trying on like to But that don't for very you stats place the choice going orders. with have probably bodes when it So said these, future. the call going conservative, They're the just no in last I distributors. are

So think for QX, this and soon one into it quarter for balance in we're how translate I quarter, be their would low levels inventory so. stats With 'XX could this the expect factory now, sales of get. that like will the to in QX QX and Certainly, us.

are and think hasn't These I stats. the pretty we powerful more getting something access. know expectation have that's I yet, but are changes. more unless pandemic away gone the dealers

So we monitor share And stats. we'll the sell-through continue But everybody. right now, to encouraged with as it very we it. we're by more, learn

Matt Pfau

fire wanted I the And other thing then ask to was the about business.

So all What the And well, sort businesses -- driving how but about seems are business recurring to standout be seeing that you there. a opportunity least doing of at or business seems in think doing term. seem be fire longer be that your just now? update to that's an you of particular, to on right maybe

Richard Soloway

to it's We mandated of keep love building. certificate a because in fire the business a business a occupancy

a very are copper and supported a the being millions radio and that StarLink anymore. to there communications to link therefore, logs, important dealers going replace to offices. fire the So seems the with dealers. use of copper radio carriers millions solution, of are lot not them the the Copper by the looking to is choice as away, be And a central of

for of new commercial of future, converted can jobs StarLink. quantities the radios. we fire So we about of And And panel using buildings many, have the far huge are in have work. to that see be as types as copper all I of years also to retooling many going from talking we're

a a Fire So building, StarLink can panel. goes use when into a they new job

which the smoke also central zones conditions. reports these communicates radio, for fire to oxide, office automatically, a has and carbon having and So built-in it besides

very building it It's So holds for mandated. It's keep and not communications our business. going upon to this very, well elected us. of sector we're

Operator

of Walkley questions line with come the Canaccord Our Mike from next Genuity.

Mike Walkley

about Kevin up reductions now see quarter. to of on the a just or maybe you to front, product help you to cost permanent the or think strong below savings? Dick, trends. where I million improve some follow mix cost going on maybe cost level Is about there help us in gross margin a think are the Can wanted just hardware from start gross that the versus margins new the kind $XX just

Richard Soloway

and quarter, the gross quarter a want waiting getting Well, equipment life strong, more on didn't the we on seeing should. margin people kind can't in And through necessarily the big this are buildings access go in are for while to sell-through -- again, orders hit we to to and we're the took that improvement last distributors our they live stats place sales. we of because that

we to So reacted it.

us We well. have The 'XX of times. experience of in a reacting taught difficult lot in recession

tail March the year, And We're lot We that that made quarter. just continue margin of going probably happen. it We in back wanted trend we cost to mix, but combination quarter, it. It's the so to last sit not equipment saw of of obviously it the and sales of react cuts saw of this declining watch a was to end affected it at QX and cost cutting. we June and hardware the on sales. a

XX%. think up going And so to things dramatically sales be why about so increase saw equipment to are We coming margin go on that's back. you the

sales it once be level, to plus. are these lot we And mid-XXs. again. high $XX should revenue sales. dramatic want hardware as at a because been, sales. Recurring just to get our grow XX% to, starts the sales, We they've So range. necessary. goes margins when it goals. the restore be XX%. And revenue be period, gross things we believe like cut get cuts our to sales QX above back, on margins Those it important. XX% to to want has the hardware to And million have that, get in as $XX not still We'll we will costs a will are been of go the these will it grow say, costs we'll margin recurring as them. the are million, The want to million grows. want at like up hit XX% we to go a will again, But hardware -- don't cost But They're then permanent to hardware both margins, as We grow. it we close the dramatically it $XX

the very too mix mix. year, So a combination. last important, us mix us versus this depends will on but it's just it's like The both. the helped And help quarter recurring

Mike Walkley

little large here more they're follow-up just on question ask see buying until start those and just any in of Or the on how you're there's a with so of again customers these Historically, buying trends. And buying, opening recovery? starting that much Is is some lower for it better end-of-quarter to to to hardware I there in they a guess, a trends your trends really products going recovering? encouraging another sharing thanks signs go early of been business. need to sell-through seeing linear of things growth to and some October lot way sign inventory can customer start maybe

Richard Soloway

to a they've been seen than with have of buying on we've that them seen wait. more sit and the we've We some week on doing encouraged back week basis -- distributors not And before. to

October look these of one just I at the month some encouraging. it's of sales, guys, on factory as very but So stats,

strong. wait afford until buy. end to the end what's a big to because I They go. December think they and even happen as in not wait don't the can't the they want to They're They of to want they're running buy sell-through stats put wait. sure low to as remain going until

done do, weeks to given biweekly, told don't them crazy end. the two till them what just last all comes the a of It's some of buy to it quarter. down wait have So we've that

And and that's think them I times encouraging we're wanting cautious seeing also. in to these So not that. run out,

Mike Walkley

And pass and last I'll along. question it me, for

not education, just the the you opportunities during might struggling you're sense Can but some a you. market, pushed been little the that school education timing bit. such of seeing delayed, challenging on the if makes happen given when what on pipeline? terms feedback pandemics Thank And to just environment it with about certainly a lost system. they're in have out of talk makes just sense, these more operate Just projects for

Richard Soloway

for that seeing getting in get cases. gotten, issuing state in We're Am When jobs schools. that it delays understandably. school We're in announce of on were open not cancellations am we so the seeing certain We're to wrestling safe say away. the in quoting happen, up situation. parts to in million and country. big some in going we've done, an country like of are for the Schools we part we on-hold I They seeing million we're remains hearing. able security to by this some saw not it. keep grants the we're And of and integrators are we're business. wrestling We us we're of somewhat schools somewhere jobs could any approval middle? I of with, what School we State I a to that's grants. the in slowed trying $XX.X the the to It's haven't It's XXX%? midst Am it's we're is remains of hybrid want of But There get students? them the But overall into encouraged to across Justice in COVID. some that parts other still going US. were encouraged what to be are from problem schools of In trying encouraged with improving jobs $XX strong. Indiana, type are parts, Department that hard these get seen encouraged cancellations. seeing to

order up approval we here ramp just to a to in sales believe announce we again, when through. and And come question starts it the stay of me, that, it's will school it. to get really feel we We announce is security it. have get as But to

Operator

from with next line of Schmidt Lake Our Jaeson Street. questions come the

Jaeson Schmidt

when been could reception comment Air contributor? just could thinking current you a has And meaningful if on be curious customer what the Access? potentially changed has revenue on macro Just your if backdrop on that

Richard Soloway

in uses create because come a IT IT It department's on product be such department to have their don't like the that to an cellular network, which is the the unique will Access Air the go entrance in. network only doesn't industry. very for one could product network, that the to through hackers have you

connect So the allow dealers building equipment to cloud. all it protecting will with the in that to we're the up also the

to You allow won't changes to it the apps what's end have dealers time be to allow able equipment and users and the like easier to be things site. their roster do find cloud. out do able interrogate, will to make and upgrades for to through the have with servers systems to software. attendance, the use on equipment going list, remote management that and also will that, in The it be is And all cloud. it on And will the

So the the able the lot we don't quicker will equipment and communications make. cloud. that equipment. allow be market will and it other user equipment to get data dealers equipment, the penetrate to access data the have site. type able And which on to dealer introduce able on end from be be to the is expensive It's is that network A having of not to of to

we're loss. we a in revenue business. not up recurring We're a vertical lot whole up to going to recurring to pick So pick We're have going going don't revenue. see more any where

Air will and can and recurring our locking want and it that us access by revenue access Our introduce we they and to burglar comes and the in build system, systems, Access putting our buyer equity allow trade, part locking control recurring in of to revenue systems businesses from from their does systems. which

and when could dealers to a So to alarm and nice their businesses. multiple raise from they cash like their they each business treat very is want other valuable get accounts

takes dealers. are and case it's of whole but be because system In in using have of this in it, ability year the to they'll the and business services the to whole maybe communication out a to reoccurring. nine and put typically, control a that they it their get end we're complex a the the flow this unlocking, mature. is give offering end dealers the way going same a end for their ability new this job service to it's locking the of having to going access it user, towards contract, a have now in things at right for The one, they So the look building. will. way year. access they all We're don't to to StarLinks, a this control continuous user development product months going do Having XX throughout to And

The you it nine months I it. years do remotely, to going upgrade to first of should done nice and go so can have to site. new years they a we're will supply it So be dealers have to change roll be things won't unbelievable in on to order many and year upgrades communications, not this anymore for equipment and better buildings that a do on and and and will all out how or it's the new It's years. the equipment. contributor, think need to give It and trucks way it's

Jaeson Schmidt

that follow-up. Previously, a annualized target XX $XX just you recurring targeting of June exiting then with million. as revenue guys And were

if still on you table? think curious Just the that's

Kevin Buchel

at Basically, at Jaeson. September. of XX.X% million now, We're $XX as

the basically, $XX big after. strength. and this saw million maybe strength delay. little sales three little We to or get target We products early. that. the didn't revenue on The target, $XX So We could million. we any diminished our there we revise hasn't we of recurring there diminished. in even see a see hardware see don't radios could more quarter But If in the is feel that get last to would get continual differently but unchanged. a quarter then the quarters had I

intact. remains target that So

Operator

Our next Jeffrey question of with line comes from Imperial Capital. Kessler the

Jeffrey Kessler

flex and you to Thanks, congratulations the to from back have of installations of that we to equipment a begin between to if a force happen begin whenever you installation the pent-up want it take on do relate to installation go And business actual you demand period. does? type and you you it, start continuing to internally sales sales, and type does see to Are the when now able come up to pandemic and position revenue recurring the your ramped will installers the where you having. when are as be call through my to in What see integrators question begin on-premises on of wanes throughout some recurring again business? tough begin

Kevin Buchel

a guess, volume I handle of recurring you're revenue? is we large Jeff, can asking what more

Jeffrey Kessler

can your of and and a efficiency force your you expenses sales in flex maintain and short Right, to installation time margin. and force sufficiently your amount

Kevin Buchel

me Let answer you.

out a built center cloud, as recurring far volume. all network scalable revenue, of very it can or As operating handle so kinds we

XX, we of We or it's million expect be will a it beyond have this in about. of on June different is just onto couple matter knock. which the rate locations. go end memory much that of we And by that knocks because run our year, And $XX now fiscal in a beyond adding can in expandable

that. So for all we're ready of

no have down our there. in Dominican can rate employees there's We scale high problem, getting unemployment we as a factory, up. far As

We around We are we're America, no duty. get. shift. a of get can We Asia a running we one to some It made including as volume and parts handle from It's there's shift. world, have second go the in Domincan. in can up. up -- some a the third the China, there scale our to shift. can made can all some in all finished We converted are in tariffs comes product. There's on We -- the no components

get pretty can We start to us parts. have the for The can anything, more. collaborating scale get do. to labor are do quickly. So the We buying and more vendors we up we to

smooth So the the With the point I from expect height. we or all. highest StarLink and we of the recurring to Access, very our it view think the Air handle point very scaled all to a view up of both to revenue revenue, be manufacturing transition going business recurring it's not exciting and handle

Jeffrey Kessler

and just remote folks thing just like saying second specific Air companies it. It's doing I terms I don't know, are to general, Access, out The access product, name. you at but the Rio… about cloud-based to throw you're in is a I on moment, like, a out only there particularly believe the of have you're the -- that in

Richard Soloway

going to doing that be company only the We're cellular. it with is

Jeffrey Kessler

Okay.

Richard Soloway

through IT get the fashion for not a There for and the and company, way causes are the kinds the people harder that companies in are all old dealers doing of to the it management causes it grief that penetration department IT But cellular. business.

So we're going choice. aspect to it do one of as it cellularly, deal a the has

you that, go either you to unique go using into traditional do go You can the can technology all some way. developed we've that or so radios our can way and cellular

to tremendous We the for going business. a this expect be that is boost

Jeffrey Kessler

to folks there do Yes, your traditional my demand they what because with that's the you to, integrators question to cellular how because that know specifiers or way do that or want give going do is demand some that don't be may they regard or was to because choice are it if a that simply way can just basically, yet. the they

and speed clients given a getting that them process in and do of able understand to quickly. radios education ease get up cellular not assuming use using big to use, that or I'm -- capability a how have distributors being quickly You cellular your have of the these to at the to is least you

Richard Soloway

it do -- going seminars, we learns very and a lunch We're not it's but simple. to of made lot

trucks be So that you interference equipment site, you will rocket be will the will the cut cloud. on no scientist up utilize required And There rolling be of from department didn't be It just have by no the there and the an once will get dealer give IT cloud get to companies. to the it. to can in out in visitor's with that app. badges the businesses and and done dealers The also working remotely. it the it's consumer management programmed, valuable the installed interrogate services data will in And can companies at even out changes a all all of the be cloud. issue

be that well thing the very in to alarm worked business. going it's a So

and that be alarm able be able You one just party integrators not recurring join business. sell off know get was will full jobs. and the revenue now to our the jobs, locksmiths to The recurring revenue their from

Operator

hand questions no like any at this There remarks. management for are call time. back to I'd closing to the over further

Richard Soloway

call. Thank you conference in participating today's everyone for

look all should feel your you Bye, bye. forward Patrick, further We for further again information. Kevin myself or any free few we always, NAPCO's and call please thank you discuss questions, a interest 'XX you to in months As to to have speaking for support, to results. and QX fiscal

Operator

you. teleconference. does today's Thank This conclude

You this may lines day. time. at great disconnect participation, Thank a you for your and have your

Napco Security (NSSC) 2 Nov 202021 Q1 Earnings call transcript